How to sell an IT services or MSP business
Managed service providers are prized for contracted monthly recurring revenue and per-seat stickiness.
The value drivers
High share of MRR from managed contracts vs break-fix
Low client churn and long tenure
Documented stacks and technicians who transfer with the book
What drags the price down
The risks a buyer discounts
- Legacy break-fix revenue that doesn't recur
- Owner holding the key client and vendor relationships
Typical valuation
often 5–9× EBITDA for high-MRR MSPs, less for break-fix-heavy shops.
Usual buyerMSP consolidators and PE-backed platforms buying recurring contracts
Indicative only — your defensible range is built from your actual numbers.
How to prepare an IT services or MSP business for sale
Know your number
Get a defensible valuation grounded in your normalised earnings and how buyers actually price businesses like yours.
Close the value gaps
Fix what discounts the price — the risks above — and strengthen the drivers buyers pay a premium for.
Clean the books & data room
Normalise financials and assemble a buyer-ready data room so nothing derails the deal in due diligence.
Run a managed process
Approach several qualified buyers to create competitive tension and protect both price and your leverage.
FAQ
What multiple do MSPs sell for?
High-MRR managed service providers often fetch 5–9× EBITDA; break-fix-heavy IT shops sell for less because the revenue doesn't recur.
How do I increase my MSP's value?
Convert clients onto managed contracts, lift MRR share, cut churn, and remove owner-dependence from client relationships.
Selling an IT services or MSP business?
We help owners value, prepare and sell — quietly, and for the best achievable price.